Suman Bhattacharyya, reporter at Digiday went live with his article, To compete with Amazon Flex, Walmart tests grocery delivery service – which includes Jim Fosina, CEO Fosina Marketing Group commentary around third-party delivery.
- An in-house platform gives Walmart greater control over the customer experience and minimizes technical hiccups, he added. Partner company Delivery Drivers, Inc. manages recruiting, screening, and payment for the independent drivers. Jim Fosina, CEO of Fosina Marketing Group, an agency that helps brands develop direct-to consumer strategies, said that while working with any third-party outfit introduces an element of risk, partners make sense in areas where it would be impractical to set up an in-house team to do deliveries. He argues Walmart will likely maintain the flexibility to adapt its delivery model to market conditions.
- “One size doesn’t fit all — it’s a real number-crunching exercise,” said Fosina. “Third-party delivery is available in some geographies, and it’s not available in others; the cost of labor may mean it’s permissible to do in-house versus a third party [in some areas], and in the end, there will probably be some blend of the two.”